Lemon law on the table to protect car buyers
Deputy Minister Fuziah Salleh told the New Straits Times that the paper will be submitted for policy approval at the cabinet level before amendments to the act are implemented.
She said the ministry is currently obtaining feedback from relevant ministries and agencies, such as the Finance Ministry, the Attorney-General's Chambers, Economy Ministry, Transport Ministry and Investment, Trade and Industry Ministry.
Fuziah said this follows the completion of a six-month legal study on lemon law, conducted from June to November last year.
The study was initiated to assess and recommend the necessary steps to be taken to enhance consumer protection in the automotive industry.
"Based on the findings of the study, the ministry concluded that there is a need to establish a specific legal framework such as a lemon law to address issues and limitations related to consumer protection in the automotive industry.
"Since the Consumer Protection Act already provides mechanisms for remedies and dispute resolution in line with the fundamental principles of lemon law, the ministry is of the view that it is appropriate for these legal principles to be integrated through amendments to the act.
"This would strengthen the existing provisions and establish new regulations that will outline more detailed procedures or mechanisms for dispute resolution, particularly for compensation claims involving new vehicles.
"Integrating these principles through amendments to the act is seen as a practical and effective approach," she said.
Currently, there are four existing legislations with lemon law features namely the Consumer Protection Act, the Contract Act, the Sale of Goods Act and Hire-Purchase Act 1967.
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